Italy’s Economy Stalls in Q3 as GDP Misses Forecasts; October Inflation Hits Over 3-Year High
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- Italy Q3 GDP flat q/q, missing +0.1% forecast
- Annual growth 0.8% versus 0.9% expected
- Net exports dragged; October inflation at 3+ year high
Italy’s economy stagnated in Q3 2026, with preliminary Istat data showing GDP unchanged q/q versus the +0.1% expected and +0.2% in the prior quarter. Annual growth slowed to +0.8% y/y, below the +0.9% forecast and the previous +1.0%. On the supply side, services and agriculture contributed positively while industrial activity declined, a concern given the sector’s links to exports. On the demand side, domestic demand added to growth, but this was offset by a negative contribution from net foreign demand. Separate Istat figures showed consumer price inflation accelerating in October to its highest level in over three years. ING noted that the flat reading adds downside risks to its 0.9% average growth forecast for 2026, citing unresolved geopolitical issues and rising inflation.